Massachusetts Turnpike to be merged into new state DOT in reorganization - bill agreed

Massachusetts Turnpike Authority will cease to exist by Jan 1 2010 under a reorganization bill (sb2087) agreed between the two houses of the state legislature. The Turnpike Authority's assets, staff, obligations and revenues will be transferred into a Highway Division of a newly created Massachusetts Department of Transportation (MassDOT).  To date Massachusetts has been unusual in having a small Executive Office of Transportation and separate agencies for untolled highways, the Turnpike, Boston area transit, ports, and airports.

The reorganization bill contains a "toll equity" provision that requires tolls collected to be spent exclusively on tolled roads.

"All revenue received from tolls, rates, fees, rentals and other charges for transit over or through all tolled roads, bridges or tunnels shall be applied exclusively to: (i) the payment of existing debt service on such tolled roads; and (ii) the cost of owning, maintaining, repairing, reconstructing, improving, rehabilitating, policing, using, administering, controlling and operating such tolled roads." (line 921)

Most Big Dig debt service would have to be shifted from tollpayers to taxpayers under "toll equity"

This appears to require shifting the most of the costs of servicing the Big Dig debt off tollpayers and onto taxpayers since about 90% of the facilities of the Big Dig are untolled (all except the Ted Williams Tunnel). The bill doesn't however spell this out, or address funding in any detail.

The bill also creates a Commonwealth Transportation Trust Fund whose outlays will controlled by annual legislative appropriations and which will be funded by state gasoline/diesel taxes plus vehicle registration fees to pay debt service and "contract assistance" (construction). Surplus revenues will be transferred to a Transportation Trust Fund which will take in toll revenues from the Turnpike, harbor tunnels and the Tobin Bridge and which will pay for MassDOT operations.

The legal distinction and financial separation between the Western Turnpike and the Metropolitan Highway system (Turnpike east of Route 128/I-95 and the three harbor tunnels) is ended as of the date of the transfer. 

MassDOT takes over all the debt obligations of the Mass Turnpike Authority, including all the indentures and covenants, the bill says

As well as a Highway Division, MassDOT will have:

- Registry of Motor Vehicles

- Mass Transit (double entendre there) including the old Boston area MBTA and "oversight" of independent regional rail authorities

- Aeronautics Division controlling municipal airports but not Boston Logan  Airport which continues to be part of Massport which independent agency also continues to run the sea port of Boston

The announcement of agreement between the House and Senate by the top officers Senate president Therese Murray and House speaker Robert DeLeo is full of highblown rhetoric about the supposed enormous savings - "billions of dollars in short and long term savings" -  to be achieved, the vast waste to be eliminated and efficiencies gained.

Murray is quoted: "“Now, along with the House, we have delivered on the promise of Reform before Revenue. This is a landmark occasion for the Commonwealth, which has never seen such a dramatic restructuring of its transportation system. We will all benefit from this major reform for decades to come.”

DeLeo is quoted: "This bill eliminates the antiquated and inefficient transportation structure in Massachusetts."

It is unclear how a different "structure," whatever that is, will save money. Specific savings are in less generous health benefits and retirement terms for transit workers, and getting rid of bloated Turnpike police.

Rich Troop E gotten off Turnpike's back

The bill lifts one major burden from tollpayers - the costs of a racketeering group of police known as Troop E of some 170 cops who last year ran up average pay of $150,537, with some taking home over $200k.  The Turnpike's 65 highest paid officers - higher than chief of operations, higher than chief financial officer, higher than chief of engineering and higher than the chief executive at $165k - were cops from Troop E.

Under the new bill Troop E  which cost the Turnpike some $35m to $40m annually in pay and benefits will be detached from the Turnpike and put under the control of the state police chief, who presumably will have to account to the legislature for appropriations.

MassDOT to have full toll setting powers

Massachusetts DOT will have full toll setting powers. The only requirements are standard ones of holding a couple of public meetings and allowing time for public comment.

However tolls for vehicles registered near the harbor tunnels continue to have their tolls frozen at 1995 rates.

The bill spells out that the Turnpike Authority continues to have toll setting powers until the transfer. After the transfer MassDOT takes over all the contracts including labor contracts and staff responsibilities of the Turnpike Authority (except Troop E police).

Governor Deval Patrick may negotiate over details of the bill but the legislature has the upper hand since it has an apparent veto proof majority in support.

Politicians reform claims:

text of sb2087:

http://www.mass.gov/legis/bills/senate/186/st02pdf/st02087.pdf

TOLLROADSnews 2009-06-18